(*) Underlying results (net of tax) in Q1-2014 are based on IFRS,
adjusted to exclude share-based compensation charges and related charges
for National Insurance of US$3.8 million, excluding US$0.6 million of
amortisation of intangibles associated with the acquisition of SiTel
(now Dialog B.V.), excluding US$2.0 million non-cash effective interest
expense in connection with the convertible bond, excluding US$ 0.2
million non-cash effective interest expense related to a licensing
agreement, excluding US$0.3 million acquisition and integration expenses
in connection with the purchase of iWatt, excluding US$3.6 million of
amortisation and depreciation expenses associated with the acquisition
of iWatt and US$17.8 million one-off non-cash deferred tax credit
resulting from an intra-group re-organisation of certain intellectual
property.

The term "underlying" is not defined in IFRS and therefore may not be
comparable with similarly titled measures reported by other companies.
Underlying measures are not intended as a substitute for, or a superior
measure to, IFRS measures. Underlying results (net of tax) have been
fully reconciled to IFRS results (net of tax) above. All other
underlying measures disclosed within this report are a component of this
measure and adjustments between IFRS and underlying measures for each of
these measures are a component of those disclosed above.

Dialog is playing its part a global enabler of the Internet of Things
(IoT). In Q1 2015, we built on the success of our first DA14580
SmartBond(TM) Bluetooth Smart System-on-Chip by announcing four new
devices in the product family. In 2014, the revolutionary DA14580
offered less than half the power consumption and size of competing
solutions and was adopted rapidly across multiple IoT segments by
leading consumer companies. Volume shipments started in Q4 2014 and
continued to ramp in Q1.

The new 2015 SmartBond(TM) SoCs are optimised for emerging high volume
consumer markets including wireless charging, wearables, smart home and
human interface devices. They integrate application specific
functionality, and feature even lower system power consumption. Equally
important, the high level of functional integration reduces our
customers' bill of materials. For smart remote control units, which will
replace traditional infrared controls, our latest SmartBond(TM) device
includes ultra-low power audio codecs for voice control, a technology
that remote control manufacturers are adopting in growing numbers. For
wearables, one of the highest volume opportunities in the IoT, we
launched the DA14680 Wearable on Chip(TM) SmartBond(TM) SoC. This
leverages Dialog's power management expertise to provide all the power
management needed for wearable computing products, including those
powered using energy harvesting techniques. Dialog is now well placed to
capture design wins in all of the major high volume consumer electronics
segments of the IoT with innovative Bluetooth Smart solutions.

Our proven success with leading smartphone customers for custom power
management IC's (PMICs) continued through Q1 2015 with new design wins.
Additionally, during the quarter we continued to ramp several new high
volume custom PMIC products for hugely popular smartphone models and
recently launched wearable products.

Our sub-PMIC - DA9210 - multi-phase DC-DC converter powers the latest
MT6795 MediaTek Octa-core Application Processor and is a key component
of MediaTek's reference platform. This is in addition to the MT6595
platform where the DA9210 is already successfully used in many China
tier 1 smartphone designs. Post the quarter close, we announced HTC's
latest smartphones, the HTC One M9+ and HTC One E9+ have adopted this
sub-PMIC technology.

In Q1, we launched two new products from the Power Conversion Business
segment. We entered the MR16 - low voltage (12 volt) downlight LED form
factor - market segment with an excellent dimming and universal
transformer compatibility solution. Additionally, we launched a new
dimming platform, delivering the ultimate in dimming performance while
eliminating more than 20 external components from the bill of materials.
These two devices allow Dialog to continue its market leadership in the
dimming segment of the fast growing LED domestic retrofit market.

The shift to higher power and faster charging continues as the China
smartphone market transitions through 2015, with our rapid charging
technology broadly adopted by the top China smartphone manufacturers.

This week we announced a joint venture (JV) with the Lite-On Group in
Taiwan for a strategic investment in Dyna Image a wholly owned
subsidiary of Lite-On. Upon closing Dialog will be the largest
shareholder with a 40% stake. Additionally, ShunSin Technology
(Zhongshan) LTD, part of ShunSin Technology Holdings LTD, a subsidiary
company of Foxconn will also hold an equity stake. The focus of the JV
will be to accelerate adoption of Dyna Image's sensors technology into
the smartphone and IoT markets, leveraging Dialog's broader power saving
and Bluetooth(R) Smart expertise and ShunSin's packaging technology for
smart system sensing solutions.